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We use payback period as one method to determine whether or not to undertake a project. It is a simple method that works well for

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We use payback period as one method to determine whether or not to undertake a project. It is a simple method that works well for small investments. It does have weaknesses which include the following EXCEPT: it works best when interest rates are high the appropriate payback period is subjectively determined O it does not always recognize all cash flows it does not incorporate the time value of money

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